Superannuation is a more than $2 trillion trillion dollar industry consisting of around 30 million member accounts – it’s a big industry.

Overall, the latest APRA statistics indicate that the superannuation industry is broken up as follows:

Type of fund

Total Assets ($ billion)

No of funds

No of accounts

Corporate

54

32

0.3 million

Industry

447

43

11.3 million

Public Sector

353

39

3.5 million

Retail

532

152

13.8 million

Funds with less than 5 members

592

574,682

1.1 million

Balance of statutory funds

55

Total

2,032

30 million

Source: APRA Statistics – March quarter 2016

How to boost your superannuation

Superannuation is likely to be a major source of your retirement income, so it makes sense to make the most of what you have. You can make extra payments into your super, but there are also other ways to enhance your superannuation account without it costing you more money out of your salary. You can…

Consolidate your super accounts

Choose the right investment

Prune your fees

Take advantage of insurance offerings

Find your lost superannuation

Let’s look at those options:

1. Consolidate your super accounts

Having two or more super accounts from different workplaces means you’re paying two or more sets of annual fees. That’s crazy! With 30 million member accounts and only around 8 million Australians aged between 20 and 80, there’s definitely some duplication there. So instead of your boss contributing to a new fund every time you change jobs, consolidate your super accounts into one fund you’re happy with. We have some great tips on how to combine your super finds here.

2. Choose the right super investment

You need to revisit your super as you hit different life stages, so you can adjust the investment strategies and insurance cover – your needs in those regards will change over time. There are literally thousands of superannuation investment options available, so weigh up all your options carefully. Read these handy tips on super investment options.

3. Prune your superannuation fees

Fees and charges will always be attached to super funds but you can definitely pay too much. To a certain extent the new MySuper products that were introduced in 2014 can help to keep fees low for some workers, particularly those who don’t take an active interest in their superannuation. But even so, small differences in fees can have a large cumulative effect.

For example, let’s look at how the super balance of a 25-year-old might change if they paid overall superannuation fees of 0.75% or 1.50% a year. We calculated their balance based on an annual income of $45,000 and $70,000, assuming this increases by 4% a year. We based the calculations on 10% of salary being contributed into their super until they reach the age of 65, with a net investment return of 8% a year.

The difference is staggering. Someone earning $45,000 per year could potentially accumulate nearly $330,000 more in super if they had lower fees, while someone earning $70,000 per year could have over $450,000 more in super with lower fees.

5. Find your lost superannuation

There’s billions of dollars of lost superannuation out there. If you’ve ever changed jobs, address, had a name change – there are plenty of ways that workers lose track of their super. You can try to track down your super by going to the ATO website.

Saving enough for retirement’s going to be a challenge for some workers anyway – so make the most of what you have. Spend a couple of hours researching your super options – both the fund that you use as well as the investment that you choose. It’s worth the effort – taking an interest in your super can make a huge difference to your retirement outcome.

If you’re considering outstanding value superannuation funds, check out the the table below which displays a snapshot of 5-Star superannuation funds on Canstar for Australians aged 30-39 with a super balance of $55k – $100k, sorted by provider name (alphabetically). Use Canstar’s superannuation comparison selector for a wider selection of super funds based on your individual circumstances.

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Related

Superannuation products displayed above that are not 'Sponsored' are sorted as referenced in the introductory text to the table. Canstar may receive a fee for referral of leads from these products. See How We Get Paid for further information. Products displayed above do not include all products/providers and may not include all features relevant to you. Please note that all information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall as well as rise.

Performance information shown is for historical periods up to 31/12/2018 and investment options noted in the product information. Performance figures shown reflect net investment performance, i.e. net of investment tax, investment management fees and the maximum applicable ongoing management fees and membership fees. Performance information is provided by Rainmaker Information Pty Ltd ABN 86 095 610 996 AFSL 461816 (www.rainmaker.com.au) which provides general information on superannuation. Performance data may not be available for some products. This is indicated in the tables by a note referring the user to the product provider, or by no performance information being shown.

Any advice on this page is general and has not taken into account your objectives, financial situation or needs and is not a recommendation for your particular circumstances. Consider whether this advice is right for you. Consider the product disclosure statement before making a purchase decision. You may need financial advice from a qualified adviser.

Performance, fee and other information displayed in the table has been updated from time to time since the rating date and may not reflect the products as rated. The performance and fee information shown in the table is for the investment option used by Canstar in rating of the superannuation product.

Investment returns of superannuation products: Canstar considers the annual investment returns of a product’s default investment option, including the default life-stage option where applicable. Where a product does not have a default investment option, annual returns for the investment option with the highest funds under management (FUM) and a 60-80% growth asset allocation are used.

Annual cost includes administration fees and indirect costs (including the investment fee, performance fee where applicable, and any other indirect management costs). This cost is calculated based on the super balance specified and the investment option considered in the 2018 Superannuation Star Ratings, which is the default investment option (including default life-stage options). Where a product does not have a default investment option, annual fees for the investment option with the highest FUM and a 60-80% growth asset allocation are used.

The Superannuation Star Ratings in this table were awarded in March 2018. View the Canstar Superannuation Star Ratings Methodology and Report. These results are general advice only and not personal financial advice. Ratings are only one factor to take into account when deciding whether to make an investment. Consider the Product Disclosure Statement before making a purchase decision.

Products marked as 'Sponsored' are paid advertisements and Canstar receives a fee for referring you to the advertiser. Canstar is not giving you financial advice in relation to Sponsored products.

Please note that all information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall as well as rise.

This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you. Consider the product disclosure statement before making a purchase decision. Canstar provides an information service. It is not a credit provider, and in giving you information about credit products Canstar is not making any suggestion or recommendation to you about a particular credit product. Statistics referenced on this page have been verified by Canstar Research. Research provided by Canstar Research AFSL and Australian Credit Licence No. 437917.